By: Elliott Wave International
"In what traders called a 'bear raid,' sellers on Monday dumped an estimated 33 tonnes of gold in just two minutes on exchanges in Shanghai and New York, sending prices on a nearly $50 downward spiral from which they never fully recovered." (Reuters, July 21)
If you live in the U.S., maybe you've noticed lately that "We Buy Gold!" signs are disappearing from sidewalks in front of pawn shops. The signs really began popping up in 2010-2011, when gold prices were climbing to their all-time high of $1900 an ounce. And even after gold tumbled from that peak in September 2011, the signs stayed up for months. Only after gold fell below $1200 an ounce in 2013 -- and price stayed flat for almost two years -- did "We Buy Gold!" signs become scarce.
Someone may chuckle at this brief record of poor timing decisions, and maybe even put it down to the general investment ineptitude of laymen. Certainly, big-name gold market players -- like central banks, for example -- with their access to privileged information and armies of PhD's would not make timing mistakes like that. Right? Continue reading "Gold Hits a 5-Year Low: How to Time the Next MAJOR Bottom"